Correlation Between Koppers Holdings and Mativ Holdings
Can any of the company-specific risk be diversified away by investing in both Koppers Holdings and Mativ Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Koppers Holdings and Mativ Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koppers Holdings and Mativ Holdings, you can compare the effects of market volatilities on Koppers Holdings and Mativ Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Koppers Holdings with a short position of Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koppers Holdings and Mativ Holdings.
Diversification Opportunities for Koppers Holdings and Mativ Holdings
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koppers and Mativ is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Koppers Holdings and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings and Koppers Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Koppers Holdings are associated (or correlated) with Mativ Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mativ Holdings has no effect on the direction of Koppers Holdings i.e., Koppers Holdings and Mativ Holdings go up and down completely randomly.
Pair Corralation between Koppers Holdings and Mativ Holdings
Considering the 90-day investment horizon Koppers Holdings is expected to generate 0.59 times more return on investment than Mativ Holdings. However, Koppers Holdings is 1.7 times less risky than Mativ Holdings. It trades about 0.0 of its potential returns per unit of risk. Mativ Holdings is currently generating about -0.03 per unit of risk. If you would invest 3,369 in Koppers Holdings on November 2, 2024 and sell it today you would lose (307.00) from holding Koppers Holdings or give up 9.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Koppers Holdings vs. Mativ Holdings
Performance |
Timeline |
Koppers Holdings |
Mativ Holdings |
Koppers Holdings and Mativ Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Koppers Holdings and Mativ Holdings
The main advantage of trading using opposite Koppers Holdings and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koppers Holdings position performs unexpectedly, Mativ Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mativ Holdings will offset losses from the drop in Mativ Holdings' long position.Koppers Holdings vs. H B Fuller | Koppers Holdings vs. Minerals Technologies | Koppers Holdings vs. Quaker Chemical | Koppers Holdings vs. Oil Dri |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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